AMAZON AND APPLE £11.2BN EU TAXES WAR

Corporates told to cough up bill How much did Juncker know?

THE EU yesterdy ramped up its £11billion tax war with corporate giants Amazon and Apple.

Amazon was told to repay more than £220million in taxes to Luxembourg. The European Commission said a “sweetheart” deal between the online retailer and country in 2003 amounted to illegal state aid.

Meanwhile the EU’S competition watchdog said it was taking Ireland to the European Court of Justice over two similar deals with Apple.

Officials are furious Ireland has snubbed a demand a year ago for it to claw back more than £11billion in taxes from the tech firm. The Irish fear that taking Apple’s cash will damage their appeal as a low tax place to invest and cost jobs.

Margrethe Vestager, European Competition Commissioner, said: “I hope both decisions are seen as a message that companies must pay their fair share of tax.”

Amazon was accused of shifting the vast majority of profits from its European arm through Luxembourg, known for its low tax rates.

Ms Vestager said: “As a result, almost three-quarters of Amazon’s profits were not taxed.” Dublin’s EUROPEAN Commission President Jean-claude Juncker is facing fresh questions in the wake of Amazon’s tax row.

The Brussels big-wig was Prime Minister of Luxembourg when an

arrangements with Apple led to the firm paying rates as low as 0.005%. It was found to have moved sales from Europe, the Middle East, Africa and India through a European HQ in Ireland that existed only on paper.

Ireland called yesterday’s move “regrettable”. Luxembourg said Amazon was “taxed in accordance with tax rules applicable at the relevant time”. Amazon denied “any alleged “sweetheart” deal was done with Amazon in 2003.

Leaked files have accused Mr Juncker in his previous role of blocking EU efforts to tackle tax avoidance by multi-nationals.

special treatment” and is considering an appeal.

It is already under fire for paying 50% less UK corporation tax last year, despite a 54% leap in turnover.

The EU clampdown threatened to escalate a row with the US on claims fast-food chain Mcdonald’s avoided nearly £890million in tax due to a royalties loophole in Luxembourg.